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Consumer privacy and targeted pricing with stochastic valuations

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dc.contributor.author Mishra, Shreemoy
dc.date.accessioned 2014-07-16T11:30:00Z
dc.date.available 2014-07-16T11:30:00Z
dc.date.issued 2014-07-16T11:30:00Z
dc.identifier.uri https://repository.iiitd.edu.in/jspui/handle/123456789/160
dc.description.abstract I study the market for consumer information. Firms cannot commit to privacy, so buyers anticipate disclosure of purchase history for targeted pricing. In the literature, strategic rejections of informative o ers make purchase data worthless, which is paradoxical given the large investments in data analytics. I show that buyers' uncertainty regarding future preferences allows full separation of types, leading to valuable purchase data. Buyers of any given type are assumed to share similar expectations about the evolution of future valuations. Preference uncertainty generates consumer-to-consumer externalities, which is why strategic consumers are sometimes better o when they remain unaware of targeted pricing. When preferences are transitory, rms have an incentive to raise consumer awareness about targeted pricing. en_US
dc.language.iso en_US en_US
dc.relation.ispartofseries IIITD-TR-2014-003
dc.subject Consumer Privacy en_US
dc.subject Purchase History en_US
dc.subject Strategic Rejections en_US
dc.subject Strategic Purchases en_US
dc.subject Targeted Pricing en_US
dc.title Consumer privacy and targeted pricing with stochastic valuations en_US
dc.type Technical Report en_US

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